Independent tax assessment required where prior administrative decision in another dealer's case cannot bind interim proceedings.

In interim proceedings concerning a provisional assessment under the U.P. Value Added Tax Act, 2008, the High Court protected the petitioner against reliance on an earlier Commissioner's decision in another dealer's case on the tax rate for similar goods. The Assessing Authority was directed to determine the applicable tax rate independently, on its own merits, without being influenced by that prior administrative decision. The operative effect was that the earlier decision was not treated as binding on the petitioner's assessment proceedings at the interim stage, and the tax liability had to be examined afresh.

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Issues: Whether, in the interim proceedings, the Commissioner's decision in another dealer's case under Section 59 of the U.P. Value Added Tax Act, 2008 could be treated as binding on the petitioner's assessment proceedings.

Analysis: The petition challenged a notice for provisional assessment and the petitioner sought protection against application of the Commissioner's earlier decision in M/s India Distributors regarding the tax rate on the goods manufactured and sold by the petitioner. Pending filing of pleadings, the Court granted interim protection and directed that the earlier decision would not bind the petitioner's assessment proceedings. The Assessing Authority was required to decide the applicable tax rate independently on its own merits and without being influenced by that earlier decision.

Conclusion: The earlier decision was held not to be binding on the petitioner's assessment proceedings at the interim stage, and the assessment authority was directed to decide the tax rate afresh.

Ratio Decidendi: An assessment authority must determine tax liability independently and cannot be controlled by an earlier administrative decision in another dealer's case where interim protection against such binding effect is granted.

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